Case.Study:.Sidmar.–.Arcelor

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Figure 73. <strong>Sidmar</strong> committees, authorities and composition Name . Board of directors IT committee IBO committees Authority Covers IT mainly in an informative way Gives advice on strategic projects Discusses IT projects Decides on resources and projects Sometimes decides on maintenance and small enhancements Prioritises projects Captures and discusses local needs of business units Decides on maintenance Small enhancements and projects Prioritises small projects within the IBO budget Composition IT Business Vice president General director social affairs Vice president IT and customer relations administration (and external transport), Vice president production engineering and investments, Vice president controlling and business development IT director Direction Applications committee director Controller Several business people from a certain business unit
Collaboration, internally as well as with all customers and suppliers, is seen as one of the main critical success factors. Other critical success factors are the active participation and full involvement of the complete IT staff from early project phases on and the continuous improvement actions to obtain a high quality level of service. Furthermore, the IT department chooses an architecture where integration with existing systems is key, above a strategy based on best of breed products. As an example, after <strong>Sidmar</strong> chose SAP as their ERP standard, they favoured the implementation of additional SAP modules (covering the business needs) over a ‘new,’ maybe better application package. A clear decision making process for IT projects is in place. Because this process is one of the key elements in a good working business-IT alignment, it is described in more detail. This process makes a distinction between small IT projects and enhancements (less than 100 persondays), and large IT projects (more than 100 persondays). All projects originate from ideas generated in the business units. For smaller projects, the decision power and the execution lies in the hands of the individual business unit, and is covered by their IBO budget. Large projects are always handled by IT and follow a strict decision and prioritisation path before the project can be initiated (Figure 74). New opportunities often surface at a fairly low level. In that case, the section head communicates this idea to his division head who in turn communicates it to the department director. The department director will propose the project in the IT committee and will act as a sponsor for the project. An architect will be assigned to conduct a feasibility study focusing on the costs and benefits. IT and business people will be involved in this study respectively responsible for the cost estimation and benefits evaluation. The ultimate decision will be taken by the IT committee based on the figures provided by the feasibility study. The IT committee prioritises IT projects on the basis of the size of the projects and four criteria: profitability, competitive advantage, operational urgency, and decision support (Figure 75). A decision grid, as shown in Figure 76, is used to score IT projects. Each project can score up to five points per quadrant, so the total score per project varies between four and 20 points. (A small project (class L) at the lowest level for all basic criteria will only have a score of 4). Based on the calculated scores, the projects get a priority class assigned following the set priority classes of Figure 77. Typically projects with a priority
Page 1 and 2: IT governance related processes at
Page 3 and 4: Figure 66. Organisation structure o
Page 5 and 6: Figure 67. Sidmar’s IT budget 15-
Page 7 and 8: Figure 70. Abstract of an individua
Page 9: Figure 72. Typical agenda of the IT
Page 13 and 14: Figure 75. Project class and basic
Page 15 and 16: Relational.Mechanisms The IT archit
Page 17 and 18: Figure 79. IT governance structures

Case.Study:.Sidmar.–.Arcelor

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